Annex A

INDEPENDENT AUDITOR’S REPORT

Hon. (Name)
Title (Municipal/City Mayor, Provincial Governor)
Local Government Unit

Unmodified Opinion
We have audited the financial statements of (LGU), which comprise the statement of financial position as at
December 31, 20XX, and the statement of financial performance, statement of changes in net assets/equity,
statements of cash flows and statement of comparison of budget and actual amounts for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position
of the (LGU) as at December 31, 20XX, and its financial performance, its cash flows and its comparison of budget
and actual amounts for the year then ended in accordance with Philippine Public Sector Accounting Standards
(PPSAS).

Basis for Unmodified Opinion

We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities of the Audit of the
Financial Statements section of our report. We are independent of the agency in accordance with the ethical
requirements that are relevant to our audit of the financial statements and we have fulfilled out other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with
PPSASs, and for such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.

Those charged with governance are responsible for overseeing the LGUs financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not guarantee that an audit conducted in accordance with
ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.

COMMISSION ON AUDIT

By:

Authorized Signatory

Date